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Development

Australian Official Development Assistance Budget Summary October 2022-23

The presentation of ODA allocations in Table 1 of the ODA Budget Summary has changed in 2022-23. An explanation of the changes is available.

Australia’s development program is building a future that benefits us and our region.

Australia’s international development program will help tackle poverty and support a stable, prosperous and secure region.

We are working with our closest neighbours to overcome our shared challenges including climate change, COVID-19 recovery and deteriorating global economic conditions.

For the first time in 20 years, the number of people living in extreme poverty has increased. Women and girls have been impacted most, with almost half a billion now living below the poverty line. Global food insecurity means over 800 million people go to bed hungry each night.

Australia will play its part in supporting sustainable development – particularly in our region where 22 of our 26 nearest neighbours are developing countries.

Australia is increasing Official Development Assistance (ODA) to the Pacific. This will ensure we remain a partner of choice for the countries of our region and responsive to Pacific priorities.

Funding to support Southeast Asia will increase, reflecting the importance of Australia’s engagement in this region to ensure our shared security, economic strength and to shape our world for the better.

Australia will get the most from our development program by listening to our neighbours and building genuine partnerships founded on mutual trust, respect and reliability. The Government will draw on Australia’s national strengths to deliver high quality, transparent and accountable assistance to the region.

Australia will leverage its institutions, culture, regional ties, economy and expertise – including the knowledge and perspectives of First Nations Australians.

Australia will enhance our effectiveness through practical support for gender equality, disability inclusion and human rights.

We will draw on our partnerships beyond development – utilising our economic, diplomatic and security connections – to build a peaceful, stable and prosperous Indo-Pacific region, where sovereignty is respected.

By working with multilateral organisations and likeminded partners, we will magnify our collective impact. Together we will contribute to achieving our collective commitment to the Sustainable Development Goals.

Highlights

Pacific

$900 million

Increase Australia’s development assistance to the Pacific and Timor-Leste by $900 million over the next four years. Australia will work with the Pacific family to strengthen climate resilience and help address a decade’s worth of development gains lost due to the pandemic.

Southeast Asia

$470 million

Boost Australia’s development assistance to Southeast Asia by $470 million over the next four years. This will support sustainable economic growth that enables the active participation of women and invests in human capacity and resilience. Australia will grow our partnerships in the region to help countries transition to net-zero emissions.

NGO Partnerships

$30 million

An additional $30 million in funding to the Australian NGO Cooperation Program over the next four years. This will support accredited Australian NGOs to deliver projects to promote sustainable development.

Pacific

Australia will deliver a comprehensive package of development programs that respond to the Pacific family’s priorities and needs.

An additional $900 million in ODA will be provided to the Pacific over four years.

The Government will strengthen the region’s climate resilience and mitigation objectives, including through the Pacific Climate Infrastructure Financing Partnership.

Australia will continue to reduce fiscal distress in partner countries, by building on existing budget and aviation sector support – laying the foundation for economic recovery from COVID-19.

We will also increase regional stability and cohesion, including through investments in health, water, sanitation and hygiene, education and social protection systems.

Australia is committed to empowering women and girls, and people with a disability, to participate more fully in social, political and economic life. We will deepen people-to-people links and bring First Nations voices to our Pacific engagement.

Australia will also expand and improve the Pacific Australia Labour Mobility scheme to ensure more Pacific and Timorese workers generate remittances, develop skills and start new businesses at home. Additional funding will include increased support for training and assistance for families to accompany long-term workers.

In 2021–22 Australia provided:

  • $298 million in budget support for the Pacific and Timor-Leste to sustain critical services during COVID-19.
  • 16,000+ services to end violence against women and girls, including counselling and accommodation.
  • 25,100 jobs to Pacific and Timorese workers to support their families.

Australia Infrastructure Financing Facility for the Pacific (AIFFP)

Australia has doubled AIFFP grant funding. The Pacific and Timor-Leste can now access a total of $4 billion in AIFFP finance ($1 billion in grants and $3 billion in loans). AIFFP investments support sustainable development and respond to partner governments’ priorities. Our investments are transparent, non-discriminatory and open. They uphold robust quality standards and create local labour opportunities to deliver long-term benefits tailored to the economic circumstances of our partners.

Through the AIFFP we partner with governments and the private sector to provide grant and loan financing for quality energy, transport, telecommunications, water and other infrastructure. There will be a greater focus on climate resilient and adaptation projects through the new Pacific Climate Infrastructure Financing Partnership.

To date, the AIFFP has agreed to 12 financing packages worth around $1.2 billion (including approximately $900 million in lending) for critical infrastructure projects across nine countries – Papua New Guinea (PNG), Fiji, Solomon Islands, Timor-Leste, Palau, Nauru, Kiribati, the Federated States of Micronesia (FSM) and Tonga.

Critical infrastructure projects

PNG

  • Ports Infrastructure
  • Laltim Hausiain Project
  • Wau and Sepik Highway

Solomon Islands

  • Tina River Hydropower Transmission System

Fiji

  • Transport Rehabilitation Project
  • Airport Fiji Ltd

Palau

  • Solar Pacific
  • Submarine Cable

Nauru

  • Airport Refurbishment

Tonga

  • Tonga Project

Kiribati, FSM and Nauru

  • East Micronesia Cable

Timor-Leste

  • Airport Facilities

Southeast Asia

COVID-19 has set back development progress in Southeast Asia. Children’s education has been disrupted and health systems are under strain. Millions of people have lost their jobs and more than 4.7 million people are slipping back below the poverty line. The region is being reshaped as a result of these and other trends.

Australia recognises we need to do more. The Government will increase ODA for Southeast Asia, providing an additional $470 million over the next four years. The new Office of Southeast Asia will lead and coordinate our whole-of- Government efforts.

Australia will work with our Southeast Asian partners to tackle this period of change together. We want a region that is peaceful and prosperous, where all states can make their own sovereign choices.

The Government will advance our ASEAN Comprehensive Strategic Partnership, including the Australia for ASEAN Futures Initiative, guided by the ASEAN Outlook on the Indo-Pacific.

Australia is committed to climate change action in the region.

Australia will develop a $200 million Climate and Infrastructure Partnership with Indonesia, focusing on climate and infrastructure financing, disaster mitigation and renewable energy. Our Partnerships for Infrastructure program is working with countries across the region to address quality infrastructure needs and assist their transition towards net-zero emissions.

Australia is assisting the region’s ongoing recovery from COVID-19. The Government will continue to support the rollout of vaccines, while strengthening health systems severely strained by the pandemic. Australia is partnering with United Nations Children’s Fund (UNICEF), United Nations Population Fund (UNFPA), MSI Asia Pacific and the International Planned Parenthood Federation to deliver essential sexual and reproductive health services to women across seven Southeast Asian countries.

Australia’s assistance will improve the region’s resilience and sovereignty through support for quality infrastructure, regional security and humanitarian assistance in times of crisis. We will support the region’s ongoing economic prosperity through support for women’s economic empowerment, investment in human capital, food security and increased trade and investment.

In 2021–22 Australia provided:

  • $60 million in additional private climate finance mobilised for climate investments in our region.
  • Emergency assistance to 1,897,476 vulnerable adults and children.
  • Services, including counselling, to 33,665 women and girl survivors of violence.

Climate change and environment

Australia recognises that climate change is the greatest threat to livelihoods, security and wellbeing of our closest neighbours in the Indo-Pacific. Nothing is more central to the security and economies of the Pacific. The Government is taking real and ambitious action to address climate change at home and in our region.

At COP26, Australia increased its climate financing commitment to $2 billion (2020–25) with at least $700 million to build climate change and disaster resilience in the Pacific. Australia provided $348.5 million in the first year of this period (2020–21) and is on track to meet the $2 billion pledge.

Australia is working to protect biodiversity to support livelihoods and build resilience to climate change. We are investing in nature-based solutions, including supporting practical action to restore and account for ‘blue carbon’ ecosystems.

Climate impacts on water threaten the health, prosperity and stability of our societies. Australia’s environment investments in the Indo-Pacific focus on water, sanitation and hygiene (WASH), and climate resilient water resource management and infrastructure.

Australia is partnering with trusted humanitarian organisations to deliver life-saving food and nutrition to those impacted by rising global food insecurity. The Government is providing financial and technical assistance to countries in our region to help build more resilient food systems.

Gender equality

Gender equality and the empowerment of women and girls is a key objective of Australia’s development program.

The Government has reintroduced an 80 per cent performance target to ensure Australia’s development investments effectively address gender equality, including mandating that those over $3 million have a gender equality objective. Australia will continue to drive genuine improvements to ensure women and girls benefit from Australian assistance.

Australia’s continued investment to champion the rights of women and girls is delivering results. In 2021–22, the inaugural Pacific Islands Forum Women Leaders Meeting was held, which recognised the challenges facing women and girls in the Pacific and affirmed regional commitment to gender equality. Australia is supporting the region through Pacific Women Lead, led by SPC (the Pacific Community).

In Southeast Asia, Australia’s Investing in Women program improves women’s economic participation in the Philippines, Indonesia, Vietnam and Myanmar. In 2021– 22, there were 35 new investments in women-led enterprises totalling $3.3 million, leveraging a further $197.6 million in private investment.

In 2022–23, Australia will provide $65 million through the Indo-Pacific Gender Equality Fund to support regional partners to advance women and girls’ economic empowerment and leadership, and prevent gender-based violence. This support will be an essential part of community-led recovery from COVID-19.

In 2021–22 Australia provided:

  • 212,688 services to women and girl survivors of violence.
  • 222,391 female entrepreneurs with financial/business development services for economic empowerment.

Civil society engagement

Australia’s support for civil society, gender equality and disability inclusion will promote stronger, more resilient societies.

Australian NGOs help build vital relationships between communities in Australia and across our region. They promote sustainable, locally-led development in partner countries and bolster domestic support for Australia’s development program.

The Government has allocated an additional $30 million to the Australian NGO Cooperation Program (ANCP) over the next four years. This funding will increase the minimum grant for all ANCP organisations. Seventy-five per cent of ANCP’s work is based in the Indo-Pacific.

In 2020–21, ANCP worked with over 2,000 local organisations in around 50 countries to deliver critical support to over 9 million people.

 

Disability inclusion

Australia is a global leader on disability inclusion and rights.

We work to ensure people with disabilities are engaged in, and benefit equally from, Australia’s development assistance. This enhances the rights and quality of life of people with disabilities. It also enables countries to harness the potential of all citizens, maximising sustainable economic growth and reducing poverty.

Effectively addressing the needs of the most marginalised, including people with disabilities, is crucial for social cohesion. Australia has restored funding to the central disability budget to $12.9 million in 2022–23, to support partners implement the Convention on the Rights of Persons with Disabilities and build the capacity of organisations of persons with disabilities. This is part of Australia’s larger contribution to disability inclusive development across bilateral, regional and multilateral programs that, in 2020–21, totalled $97.7 million.

Humanitarian

Global humanitarian needs continue to grow. Where disaster impacts exceed a country’s capacity to respond, Australia stands ready to assist.

We have a long history of supporting our partners respond to, and prepare, for humanitarian disasters. So far in 2022–23, we have supported the Pacific, including Tuvalu and Kiribati, respond to severe droughts. We have also assisted Pakistan to manage devastating floods, and Sri Lanka to address severe food shortages. We recognise the importance of preventing and reducing the impact of disasters before they occur.

Humanitarian crises have a severe impact on the most vulnerable. During and after crises, women and people with disabilities suffer disproportionately. In 2021–22, Australia responded to multiple crises, and provided emergency assistance to over 23 million vulnerable women, men, girls and boys.

Our commitment to provide annual, predictable funding to our global humanitarian partners amplifies our support. It also gives them the flexibility they need to respond quickly, avoid supply chain breaks and to ensure efficient and effective operations.

Key humanitarian responses since May 2022

  • $47m Sri Lanka crisis assistance for food, health and nutrition services, access to safe water and support for those at risk – especially women and children.
  • $15m Horn of Africa and Yemen food security and famine relief assistance for food, water and other essentials.
  • $5m Pakistan flood assistance for emergency food and livelihoods support, including for women and children.
  • $1m Kiribati drought assistance for access to safe drinking water.
  • $1m Afghanistan earthquake assistance for shelter, food and medical support.
  • $500k Tuvalu drought assistance for water security supplies
Humanitarian Partners 2022–23 Budget Estimate $m
International Committee of the Red Cross 27.5
UN Central Emergency Response Fund 11.0
UN High Commissioner for Refugees 25.0
UN Office of the Coordination of Humanitarian Affairs 10.0
UN Relief & Works Agency for Palestine Refugees in the Near East 20.0
World Food Programme 40.0

COVID-19 recovery

Managing the health, economic and social impacts of COVID-19 remains a shared challenge for our region.

Australia is supporting its neighbours to strengthen health security and build more resilient health systems that are better prepared for future pandemics. This includes preventing, detecting and responding to emerging infectious disease outbreaks while ensuring continuity of essential health services. We have shared over 47 million COVID-19 vaccines across the region to date. We continue to respond to partner countries’ vaccine needs on request.

Australia is also supporting the region’s economic recovery. Our assistance to the Indo-Pacific, amid significant fiscal and economic challenges, ensures that essential services including health, education and social protection continue. We are also working to keep vital transport corridors open. Australia’s budget support, through grants and loans, is also helping address the ongoing budgetary needs of our closest neighbours.

Support to UN development agencies in 2022–23

Agency $m
UN Women 7.8
United Nations Children’s Fund (UNICEF) 19.0
United Nations Development Programme (UNDP) 13.0
United Nations Population Fund (UNFPA) 9.2
United Nations Programme on HIV and AIDS (UNAIDS) 4.5
World Health Organization (WHO) 15.0

Estimated ODA by sector in 2022–23

Sector $m
Governance 1,079.4
Health 917.1
Multi-sector and general support 662.5
Humanitarian 639.1
Education 498.9
Economic, infrastructure & services 478.7
Agriculture, trade & production 375.3

Table 1: Australian ODA allocations by country, regional and global programs
2021–22 and 2022–23 Budget Estimate

Program 2021–22 Budget Estimate $m 2022–23 Budget Estimate $m
Papua New Guinea 479.2 479.2
Solomon Islands 103.1 103.1
Vanuatu 46.0 46.0
Fiji 40.0 40.0
Samoa 27.0 27.0
Nauru 25.5 25.5
Kiribati 24.2 24.2
Tonga 20.1 20.1
Tuvalu 8.4 8.4
Niue and Tokelau 1.8 1.8
North Pacific 5.0 3.6
Pacific Regional 396.5 609.2
Pacific 1,176.8 1,388.0
Indonesia 255.7 265.7
Timor-Leste 73.0 77.3
Philippines 63.4 68.0
Vietnam 57.2 61.7
Cambodia 43.4 46.7
Myanmar 42.1 42.1
Laos 20.6 22.6
Mongolia 5.6 5.6
ASEAN and Mekong 77.0 94.6
Southeast and East Asia Regional 38.3 46.6
Southeast and East Asia 676.3 731.0
Afghanistan 50.0 50.0
Bangladesh 30.8 30.8
Sri Lanka 16.0 23.0
Nepal 9.1 9.1
Bhutan 2.1 2.1
Maldives 1.8 1.8
South and West Asia Regional 14.3 14.3
South and West Asia 124.1 131.1
Sub-Saharan Africa 15.0 15.0
The Middle East and North Africa 17.1 17.1
The Middle East and Africa 32.1 32.1
Country and Regional Programs 2,009.3 2,282.2
Climate Change and Environment 122.4 137.2
Regional Health Security 280.1 216.2
Global Health Programs 139.6 217.2
Regional and Global Health 419.7 433.4
Scholarships 54.0 50.8
Education Partnerships 8.0 19.0
Education and Scholarships 62.0 69.8
Gender Equality, Disability and Social Inclusion 92.8 97.7
Humanitarian Emergency Fund 150.0 150.0
COVID-19 Response Fund and Assistance to Ukraine [1] 100.0 0.0
Global Humanitarian Partnerships 119.0 123.5
Protracted Crises and Strengthening Humanitarian Action 114.3 144.9
Disaster Risk Reduction, Preparedness and Response 52.0 52.0
Humanitarian, Emergencies and Refugees 535.3 470.4
Economic Resilience Partnerships 39.1 39.7
Cyber Cooperation 10.6 10.4
Debt Relief 42.7 44.6
Global, Peace and Security Contributions 91.6 113.9
National and Economic Resilience 184.0 208.6
Australian Volunteers Program 26.0 21.0
Global NGO Programs 139.1 145.4
NGOs, Volunteers and Community Programs 165.1 166.4
International Development Association 158.6 160.7
Asian Development Fund 100.1 94.2
Multilateral Development Banks 258.7 254.9
UN, Commonwealth and Other International Orgs 41.0 38.9
Development Effectiveness and Research 11.5 13.8
Cross Regional and Global Programs 1,892.5 1,891.2
Other Government Departments 338.1 274.1
Departmental (ODA) 266.8 274.4
Adjustments -50.0 -70.8
Total Australian ODA 4,456.6 4,651.1

[1]          The COVID-19 Response Fund has now concluded and the ongoing COVID-19 response is being taken forward through global and regional health programs.

The COVID-19 Response Fund did not count towards 2020–21 and 2021–22 humanitarian expenditure.

Table 2: Australian ODA by country and region of benefit
2021–22 and 2022–23 Budget Estimate

Country/region 2021–22 Budget Estimate $m 2022–23 Budget Estimate $m
Papua New Guinea 587.8 602.2
Solomon Islands 156.4 169.4
Vanuatu 75.6 83.1
Fiji 81.2 87.8
Samoa 39.7 52.0
Tonga 35.6 42.7
Kiribati 32.0 43.3
Nauru 32.2 32.9
Tuvalu 13.8 15.5
Niue and Tokelau 3.9 4.0
North Pacific 11.1 7.9
Pacific Regional 548.8 760.4
Pacific 1,618.1 1,901.1
Indonesia 299.0 307.3
Timor-Leste 105.2 114.0
Philippines 79.0 85.8
Vietnam 78.9 92.8
Cambodia 65.9 80.8
Myanmar 95.5 120.6
Laos 39.3 46.5
Mongolia 7.0 8.8
Southeast and East Asia Regional 394.4 372.5
Southeast and East Asia 1,164.1 1,229.1
Afghanistan 51.0 51.3
Bangladesh 133.8 118.9
Sri Lanka 22.7 54.3
Pakistan 8.0 17.5
Nepal 20.5 26.6
Bhutan 4.4 5.7
Maldives 2.2 2.8
South and West Asia Regional 31.1 106.1
South and West Asia 273.8 383.2
Sub-Saharan Africa 59.3 103.3
The Middle East and North Africa 31.4 45.3
The Middle East and Africa 90.7 148.6
Latin America and the Caribbean 1.6 1.3
Core contributions to multilateral organisations and other ODA not attributable to particular countries or regions 1,308.4 987.82 [2]
Total Australian baseline ODA 4,456.6 4,651.1

[2] Changes to this figure reflect better attribution of funding to countries and regions.

Table 3: Australian ODA delivered by other government departments
2022–23 Budget Estimate

Department ODA delivered directly from appropriations $m ODA delivered in partnership with DFAT $m Total ODA $m
Agriculture, Fisheries and Forestry 15.6 3.9 19.5
Australian Centre for International Agricultural Research 103.2 12.2 115.4
Australian Federal Police 49.2 7.5 56.6
Employment and Workplace Relations 25.1 0.0 25.1
Commonwealth Scientific and Industrial Research Organisation 0.0 9.4 9.4
Health 14.3 9.0 23.3
Treasury 62.1 0.1 62.2
Other 3.8 40.9 44.7
States and Territories 0.8 3.4 4.2
Total ODA delivered by other government departments 274.1 86.3 360.4

All 2021–22 and 2022–23 Budget figures are Budget Estimates.

Due to rounding, discrepancies may occur between sums of the component items and totals.

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